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HomeMy WebLinkAboutPA2023-0138_20230803_CDD_Action LetterCommunity Development Department CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3200 newportbeachca.gov/communitydevelopment VIA EMAIL August 3, 2023 Sean Matsler Cox, Castle, & Nicholson LLP 3121 Michaelson Drive, Suite 200 Irvine CA 92612 Subject: Staff Approval (PA2023-0138) 1107 Jamboree Road The Champions Club Dear Mr. Matsler, It was a pleasure working with you on the above referenced application. Please be advised that the subject application was approved by the Community Development Director on August 3, 2023 and effective on August 17, 2023. A copy of the approved action letter with findings and conditions is attached. If you have any questions, please do not hesitate to contact me directly. Thank you and I look forward to working with you again in the future. Sincerely, David Lee, Senior Planner JM/dl cc: Sean Bolletteieri 1602 East Coast Highway Newport Beach CA 92660 COMMUNITY DEVELOPMENT DEPARTMENT PLANNING DIVISION 100 Civic Center Drive, P.O. Box 1768, Newport Beach, CA 92658-8915 949-644-3200 www.newportbeachca.gov COMMUNITY DEVELOPMENT DIRECTOR ACTION LETTER Subject: The Champions Club (PA2023-0138) ▪ Staff Approval Site Location 1107 Jamboree Road Applicant Champion Management Group, Inc. Legal Description Parcel 2 of Resubdivision No. 413 On August 3, 2023, the Community Development Director approved a staff approval authorizing a new operator, Champion Management Group Inc. (“Applicant”), to operate six existing tennis courts located on Parcel 2 of Resubdivision No. 413 (“Property”) under the name “The Champions Club”. These six (6) courts were previously a part of the Palisades Tennis Club, which will continue to separately operate the ten (10) existing tennis courts and clubhouse located on Parcel 1 of Resubdivision No. 413. The Community Development Director finds that the change in operator for the six (6) courts on Parcel 2 to be in substantial conformance with the previously approved Use Permit No. UP1697. LAND USE AND ZONING • General Plan Land Use Plan Category: PR (Parks and Recreation) • Zoning District: PR (Parks and Recreation) • Coastal Land Use Category: PR (Parks and Recreation) • Coastal Zoning District: PR (Parks and Recreation) BACKGROUND On October 4, 1973, Use Permit No. UP1697 was approved by the Planning Commission, authorizing the construction of a private tennis club with lighted tennis courts, known as the John Wayne Tennis Club at the time. At the time of the approval, both Parcel 1 and Parcel 2 were owned by The Irvine Company. A vicinity map (Attachment No. CD 1) and the parcel map for Resubdivision No. 413 (Attachment No. CD 2) has been to demonstrate the layout of the parcels. The approval included a total of 16 tennis courts (15 regular courts and one (1) tennis ball machine court), an approximately 8,100-square-foot, two (2)-level tennis clubhouse consisting of restrooms and locker rooms, lounges, offices, and snack and apparel shops. Additionally, 78 parking spaces were provided in an on-site surface parking lot located on Parcel 2, which accommodated the clubhouse and all tennis courts. Parcel 1 does not include parking. Since both parcels were solely operated by the John Wayne Tennis Club, The Champions Club (PA2023-0138) August 4, 2023 Page 2 Tmplt: 07/25/19 the parking was intended to be provided for all 16 courts. UP1697 limited the hours of operation for the club to the hours of 7 a.m. to midnight, daily. All conditions of approval are included in Attachment No. CD 3. Subsequent to the approval of UP1697, the John Wayne Tennis Club began operations in 1974. In 1995, the change of ownership led to the change of name to the Palisades Tennis Club. Parcel 1 and Parcel 2 have become separately owned, with Parcel 2 being owned in common with the Hyatt Regency Hotel. PROPOSED CHANGES The Applicant is proposing to operate the six (6) existing tennis courts on Parcel 2 for tennis play and instruction, under the name “The Champions Club.” The operation is separate from the Palisades Tennis Club, which will remain in operation on Parcel 1 with ten (10) existing courts. The Applicant is proposing hours of operation between 8 a.m. to 8:30 p.m., daily. Pickleball of any form is strictly prohibited at the club unless an amendment is filed for a new use permit (Condition of Approval No. 6). Since the on-site parking lot is located on Parcel 2, the property owner has provided confirmation that parking will continue to be provided to members of the Palisades Tennis Club (Attachment No. CD 5). This has been included as Condition of Approval No. 3 as a part of this Staff Approval. As previously stated, Parcel 2 is owned in common with the Hyatt Regency Hotel. Therefore, the Champions Club will have affiliation with the hotel. In addition to the on-site parking lot, the club will have the exclusive use of 43 parking spaces located on the adjacent hotel parking lot, as well as access to overflow parking spaces for special events on an as-needed basis. Hotel members will have fee-based access to the club facilities. Members of the club will have access to the hotel’s restroom facilities. Since the clubhouse and restrooms are located within the Palisade’s property, members of the Champions Club will not have access to Palisade’s facilities. No physical improvements are proposed for the Applicant’s request to continue tennis operations. Any future changes or improvements to the club will require further review by City staff and may require additional entitlements and/or building permits. FINDINGS Pursuant to Section 20.54.070 (Changes to an Approved Project) of the Newport Beach Municipal Code (NBMC), the Community Development Director may authorize minor changes to an approved site plan, architecture, or the nature of the approved use without a public hearing, and waive the requirement for a new use permit application. In this case, the Community Development Director has determined that the new club operator is in substantial conformance with UP1697 because the project’s changes: The Champions Club (PA2023-0138) August 4, 2023 Page 3 Tmplt: 07/25/19 Finding: A. Are consistent with all applicable provisions of this Zoning Code. Facts in Support of Finding: 1. The Property is located in the Parks and Recreation (PR) Zoning District, which is intended to provide for areas appropriate for land used or proposed for active public or private recreational use. A tennis club is a listed example of an allowed use within the PR Zoning District. The six (6) existing tennis courts on Parcel 2 are part of the tennis club originally authorized by UP1697. 2. A new operator on Parcel 2 does not conflict with the allowances of UP1697, as the courts will continue to be used for tennis play and instruction. As conditioned, no pickleball is permitted on any courts as a part of the new operation. Adequate and available parking for both the Project and Palisades is also included as a condition of approval. Finding: B. Do not involve a feature of the project that was a basis for or subject of findings or exemptions in a negative declaration or Environmental Impact Report for the project. Fact in Support of Finding: 1. UP1697 included an Environmental Impact Report which discussed the construction of the tennis club, clubhouse, associated parking, etc. and its potential impact on human resources, geologic hazards, flooding, ground water, noise, air resources, vegetation and animal life, traffic, and public recreational facilities. The report concludes that the tennis club does not have a significant effect on the environment. 2. There are no physical changes proposed. The Applicant is proposing to operate the six (6) existing courts on Parcel 2, separately from the existing Palisades Tennis Club on Parcel 1. Since there is no change in use of the tennis courts, there are no features of the project that can potentially affect the environment, Finding: C. Do not involve a feature of the project that was specifically addressed or was the subject of a condition(s) of approval for the project or that was a specific consideration by the applicable review authority in the project approval. Facts in Support of Finding: 1. The proposed change of operator on Parcel 2 does not involve a feature that was specifically conditioned or addressed by UP1697. The Champions Club is The Champions Club (PA2023-0138) August 4, 2023 Page 4 Tmplt: 07/25/19 proposing to operate within the conditioned hours of operation (7 a.m. to midnight, daily). 2. There are no physical changes proposed. Any future changes are subject to building permits and a potential amendment to UP1697. 3. Additional conditions of approval for the club have been included as a part of this Staff Approval to provide zoning clearance for the new use. Finding: D. Do not result in an expansion or change in operational characteristics of the use. Facts in Support of Finding: 1. Fact A.2 is hereby incorporated as reference. 2. Fact C.2 is hereby incorporated as reference. CONDITIONS 1. The development shall be in substantial conformance with the approved site plan and floor plan stamped and dated with the date of this approval (except as modified by applicable conditions of approval). 2. All applicable conditions of approval for Use Permit No. UP1697 shall remain in effect. 3. Adequate parking for the Palisades Tennis Club of Parcel 1 shall be provided on the Hyatt Regency Hotel property. 4. Any special events for the Tennis Club on Parcel 2 shall be coordinated with the Hyatt Regency Hotel to avoid potential issues with parking. 5. Members of the Tennis Club on Parcel 2 shall have access to restroom facilities at the Hyatt Regency Hotel. 6. There shall be no pickleball activities of any kind within the Tennis Club on Parcel 2. 7. The Community Development Director may add to or modify conditions to this staff approval, or revoke this staff approval upon determination that the operations, which is the subject of this staff approval, causes injury, or is detrimental to the public health, safety, peace, or general welfare of the community or if the property is operated or maintained so as to constitute a public nuisance. 8. To the fullest extent permitted by law, Applicant shall indemnify, defend and hold harmless City, its City Council, its boards and commissions, officials, officers, The Champions Club (PA2023-0138) August 4, 2023 Page 5 Tmplt: 07/25/19 employees, and agents from and against any and all claims, demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including without limitation, attorney’s fees, disbursements and court costs) of every kind and nature whatsoever which may arise from or in any manner relate (directly or indirectly) to City’s approval of the The Champions Club including, but not limited to, a staff approval under PA2023- 0138. This indemnification shall include, but not be limited to, damages awarded against the City, if any, costs of suit, attorney’s fees, and other expenses incurred in connection with such claim, action, causes of action, suit or proceeding whether incurred by Applicant, City, and/or the parties initiating or bringing such proceeding. The Applicant shall indemnify the City for all of City's costs, attorneys' fees, and damages which City incurs in enforcing the indemnification provisions set forth in this condition. The Applicant shall pay to the City upon demand any amount owed to the City pursuant to the indemnification requirements prescribed in this condition. APPEAL PERIOD: An appeal or call for review may be filed with the Director of Community Development or City Clerk, as applicable, within fourteen (14) days following the date the action or decision was rendered. For additional information on filing an appeal, contact the Planning Division at 949-644-3200. Prepared by: ____________________ David S. Lee Senior Planner Approved by: Assistant City Manager JM/dl Attachments: CD 1 Vicinity Map CD 2 Parcel Map for Subdivision No. 413 CD 3 Use Permit No. UP1697 CD 4 Applicant’s Project Description CD 5 Correspondence from Property Owner Regarding Parking CD 6 Project Plans Attachment No. CD 1 Vicinity Map Tmplt: 07/25/19 VICINITY MAP Staff Approval PA2023-0138 1107 Jamboree Road Subject Property (Parcel 2) Palisades Tennis Club (Parcel 1) (Parcel 2) Hyatt Regency Hotel Attachment No. CD 2 Parcel Map for Subdivision No. 413 Attachment No. CD 3 Use Permit No. UP1697 Attachment No. CD 4 Applicant’s Project Description Project Description: Continued Tennis Play & Instruction 1107 Jamboree Rd (APN: 440-132-40) Pursuant to a ground lease with WRC Newport LLC, effective July 27, 2023, Champion Management Group, Inc. (“Applicant”) will assume control of the six tennis courts and approximately 14 parking spaces located at 1107 Jamboree Rd (APN: 440-132-40), shaded in red on the aerial photograph below (“Project Site”). In addition to the 14 parking spaces located on the Project Site, the ground lease includes 43 dedicated parking spaces located in the adjacent Hyatt parking lot, as shown on attached Exhibit A, as well as access to overflow parking spaces as needed (e.g., for special events) located in the Hyatt surface parking lot at the northwest corner of Jamboree Road and Back Bay Drive. The Project Site, together with the property to the north (APN: 440-132-48), previously operated as a single tennis club under Use Permit No. 1697. That club was originally known as The John Wayne Tennis Club and is currently known as the Palisades Tennis Club (“Palisades”). The Applicant proposes to continue the existing tennis operations on the six tennis courts comprising the Project Site, as follows: • Use Permit No. 1697 – Applicant’s continued tennis use of the Project Site is subject to, and will comply with, Use Permit No. 1697 and its conditions. • Parking – The Applicant will have the exclusive use of 57 parking spaces combined between the Project Site and the Hyatt surface parking lot located south of, and adjacent to, the Project site. In addition, the Applicant has access to overflow parking spaces as needed (e.g., for special events) located in the Hyatt surface parking lot at the northwest corner of Jamboree Road and Back Bay Drive. • Palisades Tennis Club Parking – The Palisades property includes no parking spaces. Palisades has historically relied on the Hyatt for parking through a lease agreement. The existing parking lease agreement between Palisades and Hyatt has expired. We understand that Palisades and Hyatt are currently negotiating a new parking agreement that would provide adequate parking spaces for Palisades’ remaining 9 full size tennis courts and 1 modified ball machine court. However, this new agreement is not yet finalized. • Hours of Operation – Tennis instruction and play will occur between 8:00 am and 8:30 pm, daily. Use Permit No. 1697 allows for operation between 7:00 am and 12:00 am, daily. • Special Events – Any special events (e.g., tournaments) are subject to, and will secure, a Special Event Permit from the City. • Affiliation with the Hyatt Hotel – Tennis players will have access to the Hyatt’s restroom facilities and Hyatt guests will have fee-based access to the Applicant’s tennis courts. • Affiliation with the Palisades Tennis Club - The Applicant and Palisades have no formal affiliation. • Physical Improvements – No physical improvements are proposed in connection with the Applicant’s continued tennis operations on the Project Site. Attachment No. CD 5 Correspondence from Property Owner Regarding Parking From: Murillo, Jaime Sent: August 01, 2023 7:55 AM To: Lee, David Subject: FW: Hyatt Regency Newport Beach - Tennis Court Sublease From: Gary Stougaard <gstougaard@chelseahp.com> Sent: August 01, 2023 2:14 AM To: Murillo, Jaime <JMurillo@newportbeachca.gov> Cc: Matsler, Sean <SMatsler@coxcastle.com> Subject: Hyatt Regency Newport Beach - Tennis Court Sublease [EXTERNAL EMAIL] DO NOT CLICK links or attachments unless you recognize the sender and know the content is safe. Mr. Murillo – My name is Gary Stougaard and I am the Owners Representative for WCP Newport LLC, the owner of the Hyatt Regency Newport Beach Hotel. As you are aware, we are currently finalizing a sublease agreement with Champion Management Group (“CMG”) for the use of the six tennis courts located on the land which WCP Newport LLC leases from JGKallins Investments Newport, LLC. CMG plans to covert these courts for future Pickleball use, but have applied to the City of Newport Beach for an interim use agreement for their continued use as tennis courts. While we finalize the terms of this agreement and related parking facilities with CMG, the purpose of this correspondence is to confirm that we will also provide interim access to on-site parking to Palisades Tennis Club members while negotiations proceed on a new parking lease with the Palisades Tennis Club. Please contact me directly if you have any questions or I can provide any additional information relative to our agreement with CMG and the status of our negotiations with Palisades for future parking for Club members. I can be reached anytime at (619) 709-4461. Thank you, Gary Stougaard Authorized Representative WRC Newport LLC. Gary A. Stougaard Attachment No. CD 6 Project Plans 10 ' - 1 / 2 " Planted Area Planted Area Planted Area 59 ' - 1 1 1 / 2 " 60 ' - 1 / 2 " 59 ' - 1 1 3 / 4 " 13 0 ' - 1 " Drive Aisle 120'-0" Hotel Parking (34 Angled Stalls) Hy a t t R e g e n c y D r i v e Planted Area Hyatt Valet Parking Area Champion Tennis Parking (27 Stalls) Pl a n t e d A r e a Hy a t t V a l e t Pa r k i n g A r e a Hyatt Regency Drive Pl a n t e d A r e a Si d e w a l k Sidewalk Go l f Pa r k i n g (3 S t a l l s ) Golf Parking (7 Stalls) Golf Parking (4 Stalls) N Exhibit A Parking Hotel Parking Champion Tennis Parking Hyatt Valet Parking Golf Parking Valet ONLY Entrance Drive Aisle Curbs, walkway and planters to be removed and replaced with parking drive aisle pavement N.T.S. General Note: This is an exhibit and has been created for discussion purposes only. This is not to be used for construction. 4 ADA stalls and Loading Zones Ac c e s s 5 A D A S t a l l s a n d Lo a d i n g Z o n e s Hotel Parking (19 Stalls)5 Stalls 5 Stalls3 S t a l l s Golf Parking (7 Stalls) Ch a m p i o n T e n n i s P a r k i n g (1 3 C o m p a c t S t a l l s )